You are given the following results from a regression model.
Calculate the sum of squared errors (SSE).
Copyright 2023. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.
Key: E
Solution: SSE is sum of the squared differences between the observed and predicted values. That is,
[(2 − 4)2 + (5 − 3)2 + (6 − 9)2 + (8 − 3)2 + (4 − 6)2 ] = 46.